PC Gamer has more from their conversation with Diablo III lead
content designer Kevin Martens, who explains that the Loot 2.0 system in their
upcoming version 2.0 patch for the action/RPG, along with the enchanting and
crafting systems, is "intended to cut the legs out from the auction house."
Here's word:

“It is fun to go buy something instantly, the instant
gratification feel, that sugar high,” he said, “however it’s not the core
fantasy, it’s not the most fun and by the endgame, for a variety of reasons,
they tend to check the auction house first and play the game second.”

That’s not what we intend, and we do want to address that, so the loot system
and the enchanting and crafting systems are both intended to cut the legs out
from the auction house; to make it unnecessary to go on it to some degree, where
the most fun way to play the game becomes the best way to play the
game.”

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durandal wrote on Aug 29, 2013, 23:41:Agreed. AH is not the core of the problem, neither is the poor drop rate. It's the poor design of item stats and the lack of customization of characters that destroy the fun of the loot hunting.Unless they do something drastic about it, it will remain a poor hack and slash game.

Oh, they plan to by making the loot that drops much better in terms of stats. The problem is, people are sick and tired of running the same crap over and over. Plus they are going to make loot drop even more scarce which means running the same shit over and over.